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Finance vs Marketing – Which is Better? – Finance and Marketing, they are two domains of study that every business needs. Ask any business man and he will tell you that their primary departments are Finance and Marketing. In simple terms, marketing department takes responsibility for generating the revenue and finance department is responsible for transporting these revenue in different activities to ensure maximum growth of the wealth.
So how these two are different? In this article, we will investigate each of these domain of study and carefully analyse the outlook of these subjects, the education you require to be able to be proficient in these fields, the primary tasks or responsibilities you need to handle, work life balance, compensation you would receive and lastly the pros and cons of being in these two professions.
As they are very broad in scope, we will pick up the most common professions under these domain and discuss in detail.
Let’s get started.
- Finance vs Marketing – Snapshot
- Finance vs Marketing Outlook
- Finance vs Marketing Education
- Finance vs Marketing Primary tasks or roles
- Finance vs Marketing Work-life balance
- Finance vs Marketing Compensation
- Finance vs Marketing Career Pros & Cons
Finance vs Marketing – Snapshot
|What is it ?||Finance department is responsible for transporting these revenue in different activities to ensure maximum growth of the wealth.||Marketing department takes responsibility for generating the revenue|
|Education||Bachelor of Commerce, Bachelor in Finance & Accounts, Bachelor in Economics, Bachelor in Mathematics etc. Economics and Mathematics, MBA in Finance||Graduation in any field of your interest. MBA in Marketing.
it’s all about understanding the business side of things and learning how to be a better sales-man.
|Hard Skills Required||Excel skills
Financial Modeling Best Practices
Knowledge of Statistical Tools
Solid understanding of Demand Supply
Customer Needs / Wants
|Travel||Mostly finance professionals do not travel much. You can safely assume that 90% of the time is spent in Office.||Marketing Professionals in most cases travel (more than 80% of time). They are found more with the clients than in office|
|Soft Skills Required||Ability to work for extended time period (80-100+ hours a week), Excellent Communication Skills Required, Writing Skills, Negotiation Skills||Presentation Skills
Ability to understand Clients Requirement, Communication Skills, Excellent Presentation Skills, Taking Ownership
|Primary Tasks||Source funds for the business related to borrorwing, IPOs etc
Investments of funds
Investment of funds in projects
MIS, report writing, communicating to the Top Management
|Performing Market Research
Understanding the Market for Bridge the gap by offering products that consumer wants
sales promotion, direct selling, online advertisements, email marketing, copywriting
Delivery of Products
Feedback of Product and Services
|Inter-dependency?||High. If finance department is being removed from any organization, then the marketing function would generate profits but will no way be fruitful for the organization as there won’t be proper distribution of profits.||High. If marketing function is being removed from an organization, no revenue will be generated and thus finance department would not be required at all other than sourcing the funds from other resources for production.|
|Work Life Balance||Varies depending on the roles. Investment bankers have no work life balance. Financial Analysts work life is relatively stable. Those in Corporate Finance roles can also enjoy a reasonable work life balanace||Sales Targest are the key. For a talented salesman / Marketing Professional, there could be no issues related to work life balance. However, many may have to slog to achieve targets. Also, social media specialist or copywriter may not need to stay late or work beyond the stipulated time.|
|Compensation||According to Payscale.com, the median salary of finance professionals is US $84,800 per annum. However, please note that it varies across departments, designations and roles||As per Salary.com, the median salary of marketing manager is US $93,459 per annum. But this amount varies as per the scope of the work, the position/designation, the core areas|
|Pros||Lots of choices with finance
|Awesome Work Life Balance
|Cons||Compensation in lower grade roles in not lucrative
Work life balance in IB and financial analyst roles in virtually none
|More of a perosnality job than a technical job
Presentation and negotiation skills makes lot of difference
Face rejections from clients
Goldman Sachs & Co
Bank of America Merrill Lynch
J.P.Morgan Chase & Co
Proctor & Gamble
|Popular Certifications||CFA, FRM, PRM, CFP, CIMA, CMA, ACCA, CPA and more||AMA’s PCM, Google Ads Certification, DMA Certification, Scrum Alliance – Scrum Certification|
|Future Status||Finance has been an age old profession. All fields should continue to operate as they were in the past. Some upcoming fields in finance include automation in Finance, algorithmic trading, Behavioral Finance etc||In this digital age, Marketing professionals have great future – expected to know number games. Marketing professionals also are now expected to integrate Data Science and Sales & Marketing Data. Expected to learn statistics, visualizing tools for analysis, R Language and more.|
Finance vs Marketing Outlook
Even if finance and marketing are two completely different fields, without one, another will hardly exist in an organization.
- For example, if marketing function is being removed from an organization, no revenue will be generated and thus finance department would not be required at all other than sourcing the funds from other resources for production.
- Similarly, if finance department is being removed from any organization, then the marketing function would generate profits but will no way be fruitful for the organization as there won’t be proper distribution of profits.
So we can understand that these two functions are complementary to each other.
Now we will pick each of them and see the outlook of each function.
- If we look at finance, there are two main functions. First is the procurement of funds and second is the utilization of funds. The chief aim of procurement of funds is to reduce the cost as much as possible.
- And the primary goal of utilization of funds is to maximize the returns.
- Now generally speaking, these two functions can further be divided in two sub-parts – short-term and long-term. When the finance department goes about procurement of funds they think two things – short-term source and long-term source.
- With short-term source, the organization takes care of the day to day operations, whereas, with long-term source the organization makes financing decisions. In case of utilization of funds, there are two types of investments.
- In the short term, the firm thinks about current assets and in the long term they invest the money in fixed assets or projects worth investing.
- If you decide to become finance professional, usually you would deal with these basic things.
- Now, finance is very broad and its scope is huge. The functions and objectives of finance (in different organizations) change as per the scope and opportunity of the domain of work.
In case of marketing, it is an art and science of attracting businesses and people to buy not only your products and services, but your philosophy of business as well.
- Through marketing, the selling process become much easier. But marketing has evolved a lot. In the middle 90s, marketing was used to fulfil only one objective and that is to generate profits. Thus the tools and techniques used back then have become obsolete for current generation of people. Today, marketing is based on permission.
- No-one likes to be bombarded with irrelevant advertisements even when the products and services you offer are of high quality. You need to first understand what customers want and then find a way to fulfil the expectation of the customers and this is the way things work in marketing now-a-days.
- It’s completely customer-centric and even before making profits, the company should concentrate mainly on fulfilling the expectations of your existing and potential customers.
- Marketing is not only used to generate revenues, but also to source best talents. If a company sells good products and services and has impeccable integrity, more and more talents would get attracted to the company.
- But that will not happen just by sitting across. It’s the function of marketing to convey the message and reach the existing & potential customers and people in general. Once the marketing of a company is taken care of, everything else takes care of themselves.
Finance vs Marketing Education
Even in the education, there are hell and heaven difference in finance and marketing.
If you want to do good in finance, you need technical skills coupled with communication and interpersonal skills. But to be good at marketing, you need to understand business and be master of communication more than anything else.
So, let’s have a look at what education would be ideal for both of these fields.
Finance Careers – Education
- If we talk about finance there are many courses and many avenues which you can take up as your potential career choice. But the question still remains which one! If you want to be in finance, it’s best that you start with the core subjects in your graduation.
- The possible degrees you can pursue in your graduation are Bachelor of Commerce, Bachelor in Finance & Accounts, Bachelor in Economics, Bachelor in Mathematics etc.
- Economics and Mathematics have special significance if you want to go in core finance domain like in investments or risk management.
- After graduation, you can go for MBA in Finance from a top notch institute or you can opt for CFA depending on whatever career goals you have.
- There are multiple opportunities and various openings if you decide to go for finance domain. So set your career goal first, do your own research and then go ahead with your preferred career choice.
Marketing Career – Education
- In case of marketing, it’s all about understanding the business side of things and learning how to be a better sales-man.
- You always don’t need to go door-to-door to sell stuffs, but you need to know your customers, how they respond to changes and who they are and their tastes and preferences.
- Generally speaking, the best option for you is to pursue a graduation field where you want to get in, in near future and then further your studies accordingly.
- After your graduation, MBA in Marketing from a reputed institute will make the work easy for you. Marketing function is so very important because if you ever dream of becoming an entrepreneur, the first thing you will need is marketing which will ultimately help you generate profitsfor your business.
Finance vs Marketing Primary tasks or roles
In this section, we will give your ideas about what you can expect from these two domains. What types of tasks you need to perform on daily basis and what sort of skills you would require would be of immense importance.
Primary tasks of Finance professionals
Now, you may understand that finance is very vast field, and to make a list of key-tasks from all is a difficult tasks. Still, let’s look at the usual tasks that you need to perform as finance professionals. According to your chosen finance profession, you can add up few core tasks to the list below.
- The primary responsibility of finance professionals is to source the funds for business. It may be in form of borrowing money from financial institutions or conducting IPO to sell shares to the public and amass the money for investing into the business. Finance is the heart of business as it pumps money in every department. So as finance professionals your responsibility can’t be overemphasized.
- Sourcing the funds is important, but it is equally important to invest the funds into right places so that the firms get the maximum ROI from the investment. The finance professionals need to decide which department needs maximum attention. Usually they should concentrate on their competitive advantage and on making that competency as the core one. Because once the firm has its core competency built properly, growth of the company can’t be stunned by uncontrollable factors.
- Now after investing the money into the business, let’s say the business makes a huge profit. What would you do with the profit? Should you plough back the profit and reinvest into the business or you would share the profits with your shareholders? Suppose, you decide to share the profits with the shareholders; how much should you give to your shareholders and how much you should keep for re-investment? As finance professionals your job is to find out the answers for above questions.
- Lastly, as finance professionals your job would be to communicate what you thought would be appropriate for business. You need to know how to write reports, communicate with the top management and present your ideas in such a way that the top management can understand the why of your decisions and how these decisions would affect the business in the long run.
Primary tasks of marketing professionals
Marketing professionals also have to perform few typical tasks that are common for most marketing professionals. Like finance professionals, marketing professionals can also choose core areas like social media, copywriting, strategy, key-account handling, salesmanship etc. and then according to the designation and scope of the work you need to perform few core tasks.
Let’s have a look at the primary tasks of marketing professionals –
- The most important task of marketing professionals is the market research. If you have a product or a service to offer, your primary job would be to know about the market. You need to go deep and find out about the customers who are potentially prone toward your types of products/services, their age, lifestyle, habits, expectations from a product/service and many more such insignificant details. Once you know these, you would be able to take actions on the inputs. There are many arguments on whether marketing research is the job of core marketing professionals or not, but the truth is it’s part of marketing function. If the scope of the organization is huge, then the market research becomes the responsibility of market research professionals.
- After market research, the main concern of marketing professionals is to bridge the gap between the products/services and the potential customers. Thus, as marketing professionals you can take many measures to reduce the gap. You can do sales promotion, direct selling, online advertisements, email marketing, copywriting etc.
- The next step is delivery. Only planning about the strategy won’t help. You need to know how to deliver the products/services so that the experience of the customers becomes maximum. There’s a part of customer service inherent within it, but it’s also one of the most important tasks of marketing as it ensures repeat customers.
- Once the customer is satisfied, you need to go one step further and offer to know how their experience is with the products and services offered by your company. Using that feedback, you can improve upon your products and services further.
Finance vs Marketing Work-life balance
In case of finance professionals, work-life balance differs from profession to profession. For example, investment banking professionals have no work-life balance as they need to work even in the weekends to meet the needs of the clients. Whereas, a finance analyst’s work-life balance is good as he works scheduled hours and he gets enough time to spend his weekend with his family.
In case of marketing professionals, work-life balance differs as well. Professionals who are directly linked to sales may need to stay late to achieve their targets. But people who are social media specialist or copywriter may not need to stay late or work beyond the stipulated time.
Finance vs Marketing Compensation
In this section, let’s have a look at the compensation of finance and marketing professionals.
According to Payscale.com, the median salary of finance professionals is US $84,800 per annum.
Let’s have a look at the salary of finance professionals as per the experience –
Let’s have a look at the salary of marketing professionals.
The compensation of marketing managers is lucrative.
As per Salary.com, the median salary of marketing manager is US $93,459 per annum. But this amount varies as per the scope of the work, the position/designation, the core areas they cover and how much experience they have in the similar field.
Finance vs Marketing Career Pros & Cons
Pros of Finance Career
- The career choices are much more in finance than any other domain.
- So if you choose to be a finance professional, your chances of getting the right job would be higher than others.
- The success of being finance professionals depends on technical skills. Thus if you can be proficient in these technical skills like financial analysis, valuation, financial modeling etc., chances of success are much more.
Cons of Finance Career
- To be compensated well, you need to choose a core finance domain and then work to become proficient in it.
- If you choose to work in general finance, the compensation is not that lucrative.
- Even if work-life balance differs according to the core profession, work pressure is always there in finance domain of work.
Pros of Marketing Career
- The work-life balance is great. Other than sales professionals, rarely marketing professionals need to go beyond the scheduled hours.
- They compensated very well. The main reason for getting lucrative compensation is the very nature of the function. Marketing helps generate revenues for the company.
Cons of Marketing Career
- It’s more of a personality job than technical job. If you can present yourself well, you would be able make your mark.
- Thus not many professionals become successful in the field of marketing.
- Rejection is the natural part of this profession.
- Many times your effort won’t work and you need to step beyond your failures, learn from them and begin again.
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